April 11, 2024
Can You Afford to Leave Large Lump-Sum Annuity Contributions on the Table?
Help government employers save on Social Security taxes and get paid on lump sum Annuity contracts.
You may be leaving large group sales on the table if you do not discuss part-time, seasonal & temporary (PST) employees’ retirement benefits with your plan sponsors.
FICA Alternative group plans deliver substantial benefits to:
- Government Employers
- Provides substantial cost savings (over 6% savings) compared to Social Security requirements.
- Part-time, seasonal & temporary (PST) employees
- Portable retirement savings benefits from which they are otherwise excluded.
- You
- Compensation based on large lump-sum group annuity funding and consolidated group level premiums. PST employee-participation is mandatory.
It’s a win-win-win!
Government employers who adopt a FICA Alternative plan eliminate and save 6.2% of their payroll tax expense for PST employees’ which would otherwise go to Social Security. Offering a FICA Alternative plan can also help employers attract and retain PST employees, a critical workforce resource, because it provides them with a portable retirement savings benefit that they own, can take with them, and keep for life.
Contributions are pre-tax and employees’ take-home pay is about the same as if they contributed to Social Security. Savings grow more rapidly due to tax deferral associated with their retirement account. And their account balance and interest credited to the plan is guaranteed through an annuity issued by Life Insurance Company of the Southwest, a member of National Life Group.
It’s time to revisit your current employer relationships!
Communicate with government employers.
The following tools will help employers and employees understand the benefits.
Welcome to Your FICA Alternative Retirement Savings Plan – Employers communicate with PST prospects and employees
Employee flyer
Welcome to Your FICA Alternative Retirement Savings Plan
FICA Alternative Plan: A retirement program that benefits you and your part-time employees.
Employer flyer
Your Group Annuity Retirement Benefit – Employers and employees understand the annuity offering
Employer and employee flyer
Recruit and Reward Part-time Employees with a FICA Alternative Retirement Plan: Part-time, seasonal, and temporary (PST) employees are a critical workforce resource yet are excluded from many full-time employee benefits.
Retirement Resource Blog article
Recruit and Reward Part-time Employees with a FICA Alternative Retirement Plan
A FICA Alternative Retirement Plan Benefits You and Your Part-Time Employees: Eliminate your payroll budget for PST Social Security payments.
Employer email – included open fields for personalized contact information. Log into the Agent Portal to retrieve this Outlook email.
FICA Alternative Agent to Employer – OUTLOOK EMAIL
IMPORTANT NOTE
FICA Alternative 3121 Plans are not available in all situations.
Please contact your Retirement Services Relationship Manager should you have questions:
